India's leading telecom operators have reportedly criticised the Telecom Regulatory Authority of India's (TRAI) new regulation requiring carriers to offer voice and SMS-only tariff packs, calling it a regressive step. They argue that this move is a setback that will hinder the transition to 4G/5G and reverse progress by preventing 2G users from fully embracing the data revolution, according to an ET report.
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Operators Oppose TRAI's Mandate
Telecom companies also called TRAI's latest regulation a retrograde step as it goes against the current practice of not charging for voice, the report said.
"At present, telcos offer voice services almost free of cost in bundled data pack offerings, but once voice and text-messages-only packs are introduced as per Trai's latest mandate, voice will get charged and such packs may be tweaked to say 'voice and SMS' instead of data," the report quoted a senior telco executive as saying.
TRAI's New Regulation
On Monday, the telecom regulator mandated that telcos introduce separate Special Tariff Vouchers (STV) for voice and SMS to give consumers the option to pay for only the services they require. The aim is to provide benefits to certain consumer segments, especially the elderly and those living in rural areas.
Furthermore, the validity period cap for STVs and Combo Vouchers (CV) has been extended from the existing ninety (90) days to three hundred and sixty-five (365) days for the benefit of consumers, the Ministry of Communications said on December 23, 2024. Telcos are also required to offer at least one Top-Up voucher of denomination Rs 10.
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Impact on 2G Users and Transition to 4G/5G
According to TRAI, this mandate would benefit India's remaining 2G users, dual SIM owners and the elderly, living in rural areas, who don't need data and do not wish to pay for it in the current bundled offerings that include data.
India's telecom operators have reportedly opposed the regulator's latest directive, which allows the country's 150 million 2G users to purchase voice and SMS-only tariff packs. They argue that this regulation would prevent feature phone users from accessing essential government-to-citizen (G2C) online services that require smartphones and data connectivity.
Accelerating Efforts to Move Users to 4G/5G
According to the report, the operators also pointed out that TRAI's regulation is completely out of sync, especially as India's top two telecom companies, Reliance Jio and Bharti Airtel, have launched nationwide 5G networks and are accelerating efforts to upgrade remaining 2G users to 4G, with plans to eventually transition them to 5G. Just in late August 2024, Reliance Industries chairman Mukesh Ambani had emphasised Jio’s commitment to a 2G-mukt (free) India, highlighting the JioBharat initiative, which offers entry-level 4G phones at prices lower than 2G phones.
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Vodafone Idea's 5G Launch
Vodafone Idea (Vi) is also preparing to launch 5G in key cities next year and enhance its mobile broadband operations to upgrade 2G customers to 4G.
"TRAI's current regulation seems to suggest it is not keen on these remaining 2G users experiencing the benefits of the data-centric Digital India initiatives," the report quoted another senior telco executive as saying.
